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Big blow to big builders

india Updated: Jul 16, 2006 21:27 IST

IN FREEING up large tracts of land for residential purposes, the 2021 Indore Development Plan (draft) may have dealt a mortal blow to big-ticket builders like Omaxe and Ansals.

As land within municipal limits became increasingly scarce, the outstation developers with cavernous pockets pumped massive amounts of cash to buy real estate on the City’s periphery, hoping to make a killing.

The master plan draft, however, may put paid to their plans. The 2021 draft has thawed large tracts of previously frozen land for residential usage. A whopping 62 per cent of the total planning area has been freed for residential purposes in all four directions.

“With land available near the City centre, obviously no one would want to live at the amenity-deprived Bypass Road,” points out an estate agent.

This, he added, would result in a rationalisation of land prices on the City outskirts. Which means that land prices the Omaxe township, for instance, which, until recently retailed for as high as Rs 500 per sq ft, an unheard of sum in those parts, are likely to come crashing down.

“The booming prices were caused by an artificial scarcity. Now that land is to be freed, prices will come down. Naturally, outstation builders are to going suffer losses,” says a famous builder, who can’t quite hide his glee at the comeuppance of his cash-rich brethren.

Others, however, differ. “The builders who invested in Indore are professional outfits who have proven their worth in ventures across the country.

They must have done their homework and if they felt that investing in real estate here wasn’t a profitable proposition, they wouldn’t have done it,” declared Joint Director, Town and Country Planning Department, V P Kulshreshtha.